ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Each new worker causes total output to grow but at a decreasing rate
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Marginal Product
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Specialization
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Increasing Returns
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Decreasing Returns
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Explanation:
Detailed explanation-1: -Causes of diminishing marginal returns include fixed costs, limited demand, negative employee impact, and worse productivity.
Detailed explanation-2: -Increasing returns to scale is when the output increases in a greater proportion than the increase in input. Decreasing returns to scale is when all production variables are increased by a certain percentage resulting in a less-than-proportional increase in output.
Detailed explanation-3: -The causes of decreasing returns to scale happen when a firm is paying more for its inputs than they are producing products.
Detailed explanation-4: -This occurs when an increase in all inputs (labour/capital) leads to a less than proportional increase in output.
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